what is 16% of this j/v farm in going to cost the mauritanians?
assume
past cap ex by j/v from initial 2d seismic to end 03 drlling ,around 100 million us.
that ,at 1.5 times cost to government is 25 million us .
2004/2005 drilling and development, 200 us.
cost to government 32 million
600 us to bring ching to production.
cost to government ,96 million,so cost to production in 2006 for them is around 150 million us or 10 million us per 1 %.
on that basis they could own all of the j/v if hdr has 1.5 billion cap aud /or 1 billion us for 20% of project.
if 50 us buys 1% of hdr,then the government gets there share of project for 10 us.
on a very rough estimate they are buying at an 80% discount to the value hdr has ascribed to mauritania.
i think they will buy .in teds comments recently he allowed us a glimpse of what could unfold should they exercise there option, which i believe expires in november,and provides the mauritanians with a good look at tiof,and 6 exploration wells before they have to exercise there option.
all back of the envelope stuff,so comments and corrections welcome.no consideration of hdr (other projects) have been ascribed.
cheers
HDR
hardman resources limited
